Sony preparing to acquire netflix or IMAX

Sony just can’t seem to catch a break, can it? In the last month, they’ve had to deal with multiple attacks from hackers, potentially compromised customer credit card information, shutting down the PlayStation Store, and the feeling from industry insider and gamers alike that Sony has just made mistake after mistake. From a financial standpoint, Sony has been losing out on potential profits.

It’s not just the hackers that have caused problems for Sony, though. The PS3 continues to be an expensive money drain for the game-side of the company – and, as a result, it’s no surprise to hear that Sony is looking to capture new revenue streams.

As a result, reports suggest that Sony could acquire one of two big movie distribution companies – to help even things out: IMAX or Netflix. Sony was rumored to be working on a bid for IMAX after the electronics manufacturer experienced an increase in stocks – and with Netflix now the go-to source for movie rentals – either scenario would certainly be attractive.

IMAX is a trusted brand for quality movie-going experiences – especially considering movies are made specifically for their extra-large theater screens. While it costs a lot of money to make or, at the least, distribute an IMAX movie – even more money is often made at the theaters in ticket sales. The IMAX acquisition would be a money-maker for the company – and could have implications for Sony Pictures, etc but would ultimately have little affect on the PS3 user-base.

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On the other hand, Netflix is one of the most used movie rental companies today. A lot of consumers have made the switch to a ¬†Netflix account. So many that established video rental chains, like Blockbuster and Rogers Video, can’t compete. Such a widely-used system would earn Sony tons of money as well. However, unlike IMAX, a Netflix acquisition could have significant benefits for console owners – ¬†as the service could become exclusive to Sony (or at the very least offer PS3 users expanded content), meaning the only way to watch movies on your game system would be through the PS3 – leaving the 360 and the Wii in the cold.

Which company would you like to see Sony acquire – and how you like to see the new addition utilized in the PlayStation world?

Leave any thoughts you may have in the comments below.

Source: Bloomberg

tags: PS3, PSN, Sony